Ethereum ETFs At Tough Roads Amid $9.91Million Outflows

Ethereum ETFs witnessed significant outflows on February 25, with investors pulling out 4,109 ETH worth approximately $9.91 million.

Bitwise led the withdrawals, offloading 3,658 ETH, valued at $8.83 million, from its holdings. The latest trend underscores a broader decline in institutional interest in cryptocurrency ETFs, mirroring similar movements in Bitcoin ETFs.

Bitcoin ETFs Also Experience Large Outflows

Ethereum ETFs did not represent the entirety of market downturns. Bitcoin ETFs witnessed significant capital withdrawal during this period resulting in 5,474 BTC being withdrawn which corresponds to $485.98 million. Fidelity distributed 2,620 Bitcoin worth $232.58 million from its total holdings thus lowering its Bitcoin assets to 204,180 Bitcoin with a total value of $18.13 billion.

The same pattern of massive withdrawals was previously seen when U.S. spot Bitcoin ETFs saw their largest market withdrawals on February 24. SoSoValue data revealed 12 spot Bitcoin ETFs suffered $516.41 million in fund withdrawals on that day which became the highest since January 8. Fidelity’s FBTC faced the largest withdrawals with funds totaling $246.96 million whereas BlackRock’s IBIT experienced redemptions reaching $158.59 million.

The widespread selling pressure became evident when every Bitcoin ETF reported zero daily inflows on that occasion. The selling pressure extended to multiple funds because Grayscale lost $59.5 million through GBTC.

On the other hand Invesco Galaxy lost $15.02 million from BTCO and WisdomTree saw its BTCW drop by $12.5 million. The total volume of Bitcoin ETF trades despite widespread selling activity reached $2.9 billion during that day. The pooled net inflow from these ETFs reaches a total of $39.04 billion since their initial launch.

Ethereum ETFs Continue to Struggle

The pressure on Ethereum ETFs has persisted because investors kept withdrawing funds from today into yesterday. The outflow of funds from Ethereum ETF products surged by $69.17 million to reach $78.09 million on February 24 as compared to the previous day’s level of $8.92 million.

The losses incurred by BlackRock’s ETHA exceeded $48.21 million as investors redeemed their investments while Grayscale’s ETHE experienced $15.45 million in withdrawals.

Additional funds managed by Bitwise and Grayscale mirrored the outflow trend after their investors withdrew $9.71 million and $4.73 million from both products.

Investors continue to withdraw their support from Ethereum ETFs because of general market instability combined with regulatory ambiguities in the industry. Investors did not make any transactions or changes in ownership of CETH through 21Shares during this period. Four other Ethereum ETFs remained inactive.

Bitcoin and Ethereum exchange-traded funds experienced withdrawal of resources as the cryptocurrency market demonstrated greater instability during this period.

The Bitcoin market has maintained primarily stable trading at $94,000 to $98,000 throughout February until outside market events triggered additional price drops to below $90K. The recent Ethereum and related token price downfall stemmed from Bybit exchange hackers stealing $1.4 billion during a security breach.

Bitcoin reached an 18.5% decline to $88,614 when it achieved its all-time high valued at $108,786 exactly during Donald Trump’s presidential inauguration.

Despite the market decline institutional investors such as MicroStrategy have continued adding Bitcoin to their portfolio by buying 20,356 BTC thus taking their total holdings to nearly 500,000 BTC.